A new strategy is emerging for supply chain managers, referred to as the new-gen supply chain, which is driven by advancements in artificial intelligence (AI). According to research by the Capgemini Research Institute, this innovative approach is both agile and sustainable, making it a top priority for businesses looking to enhance their operational efficiency and resilience. The study found that 70% of executives consider this transformation among their top three technological trends for 2025, with a marked increase in companies progressing towards adopting this model—from 54% in 2022 to 72% in 2025.
In conducting the survey with 1,000 senior executives across 13 countries and key sectors, several significant trends emerged. First, AI and agentic systems are proving to reshape supply chain operations significantly. An impressive 67% of executives expressed confidence that agentic AI would enhance productivity, while 58% believe it will fundamentally alter supply chain frameworks. This presents a clear opportunity for small and medium-sized businesses (SMBs) to leverage such technologies and stay competitive in a rapidly evolving market.
Another noteworthy insight from the research is that sustainability is driving efficiency across supply chains. About 76% of organizations reported having a well-defined sustainability strategy, indicating that many companies understand the long-term value of sustainable practices. Over three-quarters of executives acknowledged that by integrating sustainable methodologies, they not only reduce operational costs but also enhance overall business viability. For SMB leaders, this emphasizes the importance of adopting sustainable practices, not just as a regulatory compliance measure, but as a strategic lever for improvement.
However, the transition to a new-gen supply chain does entail risks. Cybersecurity and tariff sensitivities have emerged as pressing concerns for many organizations. In light of these challenges, companies are increasingly investing in real-time threat monitoring systems, diversifying their supplier base, and implementing tariff mitigation strategies. For SMBs, this means prioritizing security measures and establishing robust supplier relationships to ensure operations remain protected against potential disruptions.
To foster a future-ready supply chain, several key practices should be adopted. Firstly, organizations must embrace resilience as a strategic priority, maintaining flexibility and adaptability to navigate uncertainties. Active risk management is also essential for staying ahead of potential threats, allowing SMBs to respond promptly to unforeseen events. Beyond these, governance structures should be strengthened to integrate human-centered agentic AI effectively, ensuring that technology serves to enhance human oversight rather than replace it.
Collaboration is critical; businesses should engage with their suppliers to build sustainable and competitive practices collectively. This requires open communication channels and co-creation opportunities to identify shared goals and implement effective solutions. In addition to collaboration, enabling robust data foundations through AI is imperative. Businesses should focus on integrating AI tools to streamline data processes and establish protocols for cybersecurity across their entire value chain.
To translate these principles into actionable steps, SMB leaders can begin by implementing automation through platforms such as Make and Zapier. A first step could be mapping out repetitive tasks across the organization and identifying points where automation can be introduced. For instance, automating order processing, invoice generation, and data entry can significantly reduce manual workload and enhance accuracy. By using Make or Zapier, businesses can create workflows that integrate various applications, allowing for seamless data transfer and reducing the risk of human error.
Next, SMBs can leverage AI tools for real-time monitoring of supply chain operations. Automation can be put to use to track inventory levels, manage supplier communications, and assess potential risks such as tariff changes or operational disruptions. The implementation can start small, perhaps automating a single aspect of supply chain management and gradually expanding to more complex processes as the company gains confidence with the technology.
Another actionable area for automation is in data analytics. Utilizing AI-powered analytics tools can enhance decision-making by providing insights based on historical data, current trends, and predictive analysis. These insights can inform inventory management decisions, demand planning, and alignment with sustainability goals. By consistently refining data input, SMBs can create a feedback loop that continually prompts improvement across supply chain operations.
Integration of cybersecurity measures is also a necessary step and should not be overlooked. As automation is introduced, businesses must ensure that protocols are in place to protect sensitive information. Conducting regular security audits, employing advanced threat detection tools, and establishing clear cybersecurity protocols across the organization can help safeguard operations from vulnerabilities.
In conclusion, the journey toward implementing a new-gen supply chain requires thoughtful engagement, strategy, and continuous improvement. For SMBs, taking incremental steps towards automation and sustainability can yield substantial long-term benefits. Emphasizing collaboration, data-driven decision-making, and risk management will position organizations to not only survive but thrive in the dynamic business landscape.
FlowMind AI Insight: As SMBs pursue the transition to an agile and sustainable supply chain, embracing automation is not just a technological upgrade; it’s a fundamental shift that can drive productivity, mitigate risks, and ensure long-term growth. By strategically leveraging AI tools and fostering collaboration, companies can secure a competitive edge in a rapidly evolving market.
Original article: Read here
2025-09-05 13:25:00